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Product designers at Great American Life Insurance Company looked at recent stock market performance and decided consumers might be in the mood for a plain vanilla annuity.

The Great American Insurance Group unit has introduced the American Freedom Classic 3 contract, a multi-year guaranteed annuity (MYGA) contract with a fixed interest rate that’s guaranteed to stay the same for three years.

(Related: Great-American Adds Variable Indexed Annuity)

If a consumer decides to renew the annuity at the end of the first three-year term, Great American Life will then set a new interest rate and guarantee to pay that rate throughout a second three-year term, Great American Life says.

Dave Mebius, national accounts director at the Cincinnati-based company, said in a statement about the product that market volatility has created a need for products with rates that stay fixed over a relatively short term.

“Last year, the S&P 500 hit an all-time high and investors were faced with a flat yield curve,” Mebius said in a statement. “Couple that with the recent extreme market volatility, and you can understand why many consumers are looking for ways to protect their retirement savings.”

Wink Inc. reported in November that MYA sales were 63% higher in the first three quarters of 2018 than in the first three quarters of 2017.

— Read Wink Posts the Rest of the Annuity Sales Increase Storyon ThinkAdvisor.

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